Investment Objective/Strategy -The First Trust Materials AlphaDEX® Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the StrataQuant® Materials Index.

There can be no assurance that the Fund's investment objectives will be achieved.

The StrataQuant® Materials Index is an "enhanced" index developed, maintained and sponsored by the NYSE Group, Inc. or its affiliates ("NYSE")
which employs the AlphaDEX® stock selection methodology to select stocks from the Russell 1000® Index.

The NYSE constructs the StrataQuant® Materials Index by ranking the stocks which are members of the Russell 1000® Index
on growth factors including three, six and 12-month price appreciation, sales to price and one year sales growth, and, separately, on value factors including book
value to price, cash flow to price and return on assets.

Stocks which Russell has classified solely as growth or value, receive their score using the above growth or value factors respectively.

Stocks which Russell allocates between both growth and value receive their best score between the growth and value factors.

The NYSE then ranks those stocks contained in the the materials sector according to their score. The bottom 25% is eliminated and the top 75% is selected for the StrataQuant® Materials Index.

The selected stocks are divided into quintiles based on their rankings and the top ranked quintiles receive a higher weight within the index. The stocks are equally-weighted
within each quintile.

The index is reconstituted and rebalanced quarterly.

Fund Overview

Ticker

FXZ

Fund Type

Materials

Investment Advisor

First Trust Advisors L.P.

Investor Servicing Agent

Bank of New York Mellon

CUSIP

33734X168

Intraday NAV

FXZIV

Fiscal Year-End

07/31

Exchange

NYSE Arca

Inception

5/8/2007

Inception Price

$20.00

Inception NAV

$20.00

Rebalance Frequency

Quarterly

Gross Expense Ratio*

0.70%

Net Expense Ratio*

0.70%

* As of 12/1/2014

Expenses are capped contractually at 0.70% per year, at least until November 30, 2015.

The price used to calculate market return is determined by using the midpoint between the highest bid and the lowest offer on the stock exchange, on which shares of the Fund are listed for trading, as of the time that the Fund's NAV is calculated.

Top Industry Exposure (as of 3/2/2015)

Chemicals

42.53%

Containers & Packaging

20.90%

Metals & Mining

16.09%

Building Products

6.42%

Paper & Forest Products

4.54%

Machinery

3.56%

Trading Companies & Distributors

2.50%

Electrical Equipment

2.02%

Construction Materials

0.76%

Aerospace & Defense

0.68%

Month End Performance (as of 1/30/2015)

3 Mos

YTD

1 Year

3 Year

5 Year

10 Year

SinceFundInception9

Fund Performance *

NAV

-4.96%

-5.26%

-2.55%

9.72%

12.46%

N/A

6.82%

After Tax Held

-5.27%

-5.26%

-3.25%

8.92%

11.81%

N/A

6.27%

After Tax Sold

-2.80%

-2.98%

-1.41%

7.21%

9.67%

N/A

5.17%

Market Price

-4.87%

-5.23%

-2.55%

9.70%

12.45%

N/A

6.83%

Index Performance **

StrataQuant® Materials Index

-4.81%

-5.20%

-1.95%

10.53%

13.30%

N/A

7.64%

Russell 1000® Materials And Processing Index

-1.58%

-2.86%

7.13%

10.71%

13.62%

N/A

N/A

Russell 1000® Index

-0.43%

-2.75%

13.76%

17.62%

15.84%

N/A

6.16%

S&P 500 Materials Index

-1.16%

-1.89%

9.91%

10.86%

12.82%

N/A

4.85%

Quarter End Performance (as of 12/31/2014)

3 Mos

YTD

1 Year

3 Year

5 Year

10 Year

SinceFundInception9

Fund Performance *

NAV

-0.90%

-0.98%

-0.98%

16.22%

12.58%

N/A

7.66%

After Tax Held

-1.23%

-1.69%

-1.69%

15.38%

11.93%

N/A

7.09%

After Tax Sold

-0.51%

-0.54%

-0.54%

12.38%

9.76%

N/A

5.85%

Market Price

-0.93%

-1.07%

-1.07%

16.24%

12.59%

N/A

7.66%

Index Performance **

StrataQuant® Materials Index

-0.75%

-0.37%

-0.37%

17.09%

13.46%

N/A

8.48%

Russell 1000® Materials And Processing Index

-0.46%

5.48%

5.48%

15.82%

12.44%

N/A

N/A

Russell 1000® Index

4.88%

13.24%

13.24%

20.62%

15.64%

N/A

6.62%

S&P 500 Materials Index

-1.80%

6.91%

6.91%

15.58%

11.23%

N/A

5.16%

3-Year Statistics (as of 1/30/2015)

Standard Deviation

Alpha

Beta

Sharpe Ratio

Correlation

FXZ

13.03%

-1.51

1.07

0.75

0.90

S&P 500 Materials Index

10.93%

---

1.00

0.96

1.00

Standard Deviation is a measure of price variability (risk). Alpha is an indication of how much an investment outperforms or underperforms
on a risk-adjusted basis relative to its benchmark.Beta is a measure of price variability relative to the market. Sharpe Ratio is a measure
of excess reward per unit of volatility. Correlation is a measure of the similarity of performance.

*Performance data quoted represents past performance. Past performance is not a guarantee of future
results and current performance may be higher or lower than performance quoted. Investment returns
and principal value will fluctuate and shares when sold or redeemed, may be worth more or less than
their original cost.

After Tax Held returns represent return after taxes on distributions. Assumes shares have not been sold.
After Tax Sold returns represent the return after taxes on distributions and the sale of fund shares. Returns
do not represent the returns you would receive if you traded shares at other times. Market Price returns
are based on the midpoint of the bid/ask spread. Returns are average annualized total returns, except
those for periods of less than one year, which are cumulative. The fund's performance reflects fee waivers
and expense reimbursements, absent which performance would have been lower.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and
do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax
situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold
their fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.

**Performance information for the StrataQuant® Materials Index is for illustrative purposes only and does not represent actual fund performance.
The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the performance
shown. Indexes are unmanaged and an investor cannot invest directly in an index.

The gross expense ratio for this fund is 0.70%. Expenses are capped contractually at 0.70% per year, at least until November 30, 2015.

The Russell 1000® Index is an unmanaged index used to measure the large-cap U.S. equity universe.

The Russell 1000® Materials & Processing Index is an unmanaged index which includes the stocks in the materials & processing sector of the Russell 1000® Index.

The S&P 500 Materials Index is an unmanaged index which includes the stocks in the information materials sector of the S&P 500 Index.

Footnotes

1

The NAV represents the fund's net assets (assets less liabilities) divided by the fund's shares outstanding.

2

Fund shares are purchased and sold on an exchange at their share price rather than net asset value (NAV), which may cause the shares to trade at a price greater than NAV (premium) or less than NAV (discount).

3

The Morningstar RatingTM is provided for those exchange-traded funds ("ETFs") with at least a three-year history. Ratings are based on
the ETF's Morningstar Risk-Adjusted Return measure which accounts for variation in monthly performance, placing more emphasis on
downward variations and rewarding consistent performance. An ETF's risk-adjusted return includes a brokerage commission estimate.
This estimate is intended to reflect what an average investor would pay when buying or selling an ETF. PLEASE NOTE, this estimate is
subject to change and the actual brokerage commission an investor pays may be higher or lower than this estimate. Morningstar compares
each ETF's risk-adjusted return to the open-end mutual fund rating breakpoints for that category. Consistent with the open-end mutual fund
ratings, the top 10% of ETFs in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next
22.5% receive 2 stars and the bottom 10% receive 1 star. The overall rating for an ETF is based on a weighted average of the time-period
ratings (e.g., the ETF's 3,5, and 10 year rating). The determination of an ETF's rating does not affect the retail open end mutual fund data
published by Morningstar. Past performance is no guarantee of future results.

4

Most recent distribution paid or declared through today's date. Subject to change in the future.

5

30-day SEC yield is calculated by dividing the net investment income per share earned during the most recent 30-day period by the maximum offering price per share on the last day of the period.

6

12-Month Distribution Rate is calculated by dividing the sum of the fund's trailing 12-month ordinary distributions paid or declared by the NAV price. Distribution rates may vary.

7

Index yield represents the weighted average trailing 12-month dividend of the constituents of the StrataQuant® Materials Index

8

All market capitalization numbers are in USD$ Millions.

9

Inception Date is 5/8/2007

You should consider the fund's investment objectives, risks, and charges and expenses carefully before investing. You can download a prospectus or summary prospectus, or contact First Trust Portfolios L.P. at 1-800-621-1675 to request a prospectus or summary prospectus which contains this and other information about the fund. The prospectus or summary prospectus should be read carefully before investing.

ETF Characteristics

The fund lists and principally trades its shares on the NYSE Arca, Inc.

The fund's return may not match the return of the StrataQuant® Materials Index. Securities held by the fund will generally not be bought or sold in response to market fluctuations.

Investors buying or selling fund shares on the secondary market may incur customary brokerage commissions.
Market prices may differ to some degree from the net asset value of the shares. Investors who sell fund shares may receive less than the share's net
asset value. Shares may be sold throughout the day on the exchange through any brokerage account. However, unlike mutual funds, shares may only be
redeemed directly from the fund by authorized participants, in very large creation/redemption units.

Risk Considerations

The fund's shares will change in value, and you could lose money by investing in the fund. One of the principal risks of investing in the fund is market risk. Market risk is the risk that a particular stock owned by the fund, fund shares or stocks in general may fall in value. There can be no assurance that the fund's investment objective will be achieved.

The fund may invest in small capitalization and mid capitalization companies. Such companies may experience greater price volatility than larger, more established companies.

Materials and processing companies are subject to certain risks, including the general state of the economy, consolidation, domestic and international politics and excess capacity. Materials companies may also be significantly affected by volatility of commodity prices, import controls, worldwide competition, liability for environmental damage, depletion of resources and mandated expenditures for safety and pollution control devices.

The fund is classified as "non-diversified" and may invest a relatively high percentage of its assets in a limited number of issuers. As a result, the fund may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility and be highly concentrated in certain issuers.

First Trust Advisors L.P. is the adviser to the fund. First Trust Advisors L.P. is an affiliate of First Trust Portfolios L.P., the fund's distributor.

The StrataQuant® Materials Index is a trademark of the NYSE Group, Inc. or its affiliates ("NYSE") and has been
licensed for use by First Trust Portfolios L.P. The fund is not sponsored, endorsed, sold or
promoted by NYSE and NYSE makes no representation or warranty
regarding the advisability of investing in the fund or as to the result to be obtained by
any person from use of the index in connection with the trading of the fund.

Russell Investment Group is the source and owner of the trademarks, service marks and
copyrights related to the Russell Indexes. Russell® is a trademark of the Russell
Investment Group.

"AlphaDEX®" is a registered trademark of First Trust Portfolios L.P. First Trust Portfolios L.P. has obtained a patent for the AlphaDEX® stock selection methodology from the United States Patent and Trademark Office.